Canadian mining company Guyana Goldfields remains on track to start gold production at its Aurora Gold Project by mid-year and expects to produce between 30,000 to 50,000 ounces of gold in 2015.
“Construction activities at Aurora are in full gear and progressing on schedule and on budget with first gold production on track for mid-2015,” the company said in a statement while noting that as of December 31 last year, it had incurred US$172 million of the approved budget of US$249 million, with US$77 million remaining in capital expenditures in order to reach commercial production.
The company is currently spending approximately US$10 million on a monthly basis. According to the statement, the project is tracking on budget with US$58 million available in overfunding.
The statement said that Guyana Goldfields will begin phased commissioning of its gold processing plant in mid-2015, which includes the semi-autogenous grind (SAG) mill and gravity circuit. Full plant mechanical completion is anticipated in the third quarter of 2015.
The company is targeting a three-month timeframe to reach commercial production which is estimated in late third quarter of 2015. The first full year of gold production will be 2016.
The statement said that plant construction has been focused on the installation of critical plant components including the saprolite feed system, the SAG mill and gravity circuit to support the phased commissioning plan. All bulk earthworks on the plant platforms and dam and water retention structures are complete. Clearing of the Rory’s Knoll open pit has defined the pit outline with excavation below river level with no in-flow of water, as expected. “All major material and equipment are on site and undergoing final assembly and installation. Overall, project construction is approximately 80% complete with the company now focusing on operational readiness and upcoming commissioning,” the statement said.
It added that Guyana Goldfields is currently operating at peak construction and manpower levels with over 800 personnel at site. “Currently, all key operations staff are in place and staffing-up departments for training in anticipation of commissioning and start-up. Total operational manpower is expected to be below 600 people,” the statement said.
Guyana Goldfields is a Canada-based mineral exploration company which is focusing on the exploration and development of gold deposits in Guyana. The company has been operating in Guyana since 1996. According to the plan for its Aurora Gold Project, the mine is designed to produce 3.29 million ounces of gold, averaging 194,000 ounces per year, over an initial 17-year mine life.
The company is the second that will begin large-scale gold production this year. Stabroek News reported on Sunday that Australian mining firm Troy Resources Limited is accelerating preparations to start producing and selling gold from its large-scale Karouni Gold Project in Region Seven by July.
For the past few years, gold has been a mainstay of Guyana’s economy and the precious mineral is the largest earner of foreign exchange but declarations from small and medium-scale producers are on the decline after some miners, confronted with a variety of factors including a drop in gold prices, exited the sector.
Gold declarations for the first two months of this year have plunged by almost 40%, according to data from the Guyana Gold Board and with less gold being exported earnings have also dropped significantly. Gold declarations and earnings have been on a downward spiral since last year following a record high in 2013.
